Business owner policy for Texas businesses
Property, liability, and lost income in one policy, built for the small Texas business too busy to shop for three.
What it covers
- Your building, if you own it, and improvements you've made to a leased space
- Business property: inventory, equipment, furniture, and computers
- Lost income and ongoing expenses while you're closed after a covered loss
- Injuries and property damage you cause to others (general liability)
- Wind and hail damage, subject to the deductible (often excluded in coastal counties, where TWIA fills the gap)
- Equipment breakdown, if included or added by endorsement
- Legal defense for covered liability claims
How it works in Texas
A business owner policy packages the three things most small businesses need: coverage for your property, general liability for claims against you, and business income to replace what you’d lose if you had to close. Carriers price the bundle as one, which usually comes out cheaper than the parts.
For a Texas business, the property side is where you should look closely. Wind and hail are among the most common commercial property claims in Texas, and many carriers apply a separate deductible to them, sometimes as a percentage of your building or contents value. If you lease your space, you’ll also want to know what your lease makes you responsible for. Some Texas commercial leases push glass, HVAC, and interior build-out onto the tenant.
Flood is excluded from a standard BOP, same as with a home policy. NFIP policies usually have a 30-day waiting period, so don’t wait for a forecast. If your shop is in a flood-prone part of Houston or along the coast, a separate commercial flood policy is worth pricing. Coastal businesses may also need wind coverage from TWIA, which is only available through an agent.
Business income coverage deserves a real conversation rather than a default. Repairs after a major Texas storm can take a long time when every contractor in the county is booked. The number of months your policy will keep paying matters.
What changes your price
- What your business does and how risky carriers consider it
- The value of your building, if you own it, and your contents
- Your annual revenue and square footage
- The building’s age, construction, and roof condition
- Your location, especially for hail and coastal wind
- Deductibles, including any separate wind/hail deductible
- Claims history
What we’ll ask you
- What you do and where you do it
- Whether you own or lease, and a copy of the lease’s insurance section if you have it
- A rough value for equipment, inventory, and improvements
- Annual revenue and number of employees
- Any prior claims
If you’re opening a new location and the landlord needs a certificate before you can sign, tell us the date.
Why go through an independent agent
BOP eligibility rules vary by carrier. One will write a restaurant with a fryer, another won’t. One caps revenue at a level your business passed last year. We keep track of which carriers fit which kinds of businesses right now, so you’re not filling out the same application three times to get one quote.
Past the first year, a BOP needs attention. Your inventory grows, you add a second location, your lease renews with new insurance language. Having someone who already knows your business means those changes get handled with a call, not a new application.
Common questions
What's the difference between a BOP and general liability?
General liability only covers claims from other people. A business owner policy includes general liability and adds coverage for your own property and your lost income if you have to close. If you have a storefront, inventory, or equipment worth protecting, a BOP is usually the better fit and often costs less than buying the pieces separately.
What kinds of businesses qualify for a BOP?
Smaller, lower-risk operations: retail shops, offices, restaurants, salons, small contractors, and professional services are typical. Carriers have revenue and square-footage limits, and some trades are excluded. If your business is bigger or riskier than a BOP allows, we'll build the same coverage from separate policies.
Does a BOP cover hail damage to my building in Texas?
Usually, but check two things: whether wind and hail are excluded, which is common in the coastal counties where TWIA covers it instead, and the deductible. Texas commercial property coverage often carries a separate wind/hail deductible, sometimes a percentage of the building value. That number is what you'll pay after a storm, so check it on the quote before you buy.
What is business income coverage?
If a covered loss, like a fire or roof collapse, forces you to close, business income coverage is designed to replace the net income you would have earned and keep paying normal operating expenses like rent and payroll during the repair period, up to the policy's limits and time period. It's often the part of a BOP that keeps a small business from going under after a claim it otherwise survived.
Do I still need workers comp or commercial auto?
A BOP doesn't cover employee injuries or vehicles. Texas lets most private employers choose whether to carry workers comp, and vehicles used for business usually need a commercial auto policy, which we can quote alongside the BOP.
This page is general information about business owner policy insurance in Texas, not a description of any specific policy. What a policy covers, excludes, and pays is set by the policy documents the carrier issues, which control if anything here differs. Coverage availability and terms vary by carrier and by risk, and can change after this page was written. How we write and check these pages.
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